Which of the following statements regarding sales returns and allowances is not true?

Group of answer choices

A reduction in the selling price because of damaged merchandise is included in sales returns and allowances.

Sales returns and allowances do not have an impact on gross profit.

Sales returns and allowances are closed to the Income Summary account.

Sales returns and allowances are rarely disclosed in published financial statements.

Sales returns and allowances are recorded in a separate contra-revenue account.